59% of UK shoppers have not decided on the brand they will purchase before researching or buying a product online.

GENERAL MERCHANDISE

Research shows UK shoppers lack brand loyalty to retailers

11 November 2010 | by The Retail Bulletin

59% of UK shoppers have not decided on the brand they will purchase before researching or buying a product online.

Consumers are also beginning to take the web with them when they shop, accessing price comparison sites, social networks and product reviews via their mobile phones – all of which are key factors in helping them to make decisions on which brand to purchase. Nearly half of UK shoppers (42%) have used their mobile phone while shopping, 16% of which used it to compare prices with other stores, according to a new study of 501 UK shoppers. The study – the first of its kind to measure mobile shopping habits – also indicated that most UK shoppers (82%) will visit more than one website before purchasing a product; 17% will visit as many as four.

The study also revealed that shoppers rely on three types of content when making buying decisions: product details, user reviews and personalised recommendations. 86% indicated that they used user ratings and reviews for online purchases, while the majority of those surveyed (84%) had researched or purchased products online using recommendations, and 42% of UK shoppers made a purchase that was recommended by an online retailer.

These statistics indicate that access to recommendations, ratings and reviews online – at home or on the go – influence consumers’ purchase decisions, making them savvier than ever before. Customers increasingly shop across channels. 44% of UK shoppers have “channel-switched,” going online before purchasing a product in store, making the competition for shoppers on the high street as fierce as it is on the web.

“Capturing the consumer’s attention prior to purchase and retaining it following the purchase is the magic formula that all retailers are trying to achieve. We call it ‘stickiness’ and it is becoming even more necessary as cross-channel shopping increases,” said David Selinger CEO of RichRelevance. “Whether it’s a knowledgeable shop assistant in-store or a set of personalised recommendations online, consumers want access to information and products catered specifically to them at a competitive price. Balancing these requirements is the key to making shoppers ‘stick’ to a shop or site to make their purchase.”

“What’s clear is that the rulebook on customer engagement has been torn up. Consumers are making more informed decisions than ever before and they demand access to recommendations and customer opinions such as ratings and reviews across all channels,” said Gerardo Dada, senior director of product marketing at Bazaarvoice. “Retailers must shift focus from the point of purchase to the point of decision – and shoppers are making their decisions online.”

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